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The Strategy for Outsourcing of Informational Technologies: Challenge or Necessity

Rumen Varbanov

Economic Thought journal, 2007, issue 3, 45-69

Abstract: A new form of organization of the business-informational system is examined – the IT outsourcing. Examined are its advantages and risks, its different models, the development trends and the place of Bulgaria on this market. An attempt is made to analyze of the most significant advantages of the IT outsourcing over the traditionally used methods for management of the IT infrastructure. A recommended list is made of the functions that could be assigned to an external company, the approach to the choice of the most appropriate outsourcer (external executor) and the conclusion of a contract for outsourcing so that the contracting company not to lose security and control over the functions, but to achieve competitive privileges. The main steps in development of an IT outsourcing strategy of the enterprise are formulated. Analyzed are the development of the market of IT outsourcing services in Bulgaria and some problems caused by the specifics of the legislature and the IT business in our country.

JEL-codes: L21 L22 (search for similar items in EconPapers)
Date: 2007
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Handle: RePEc:bas:econth:y:2007:i:3:p:45-69